Motor Vehicles

Definitions

Fair Market Value

To determine the FMV the EW will use the information provided on the "Self-Certification Form For Motor Vehicles - CalWORKs" (CW 80). The county must accept an applicant’s or recipient’s self-certification of all vehicles in the AU, as well as any encumbrances.

Equity Value

The equity value of a vehicle needs to be determined only if it does not qualify for an exemption. Workers will use the information provided on the CW 80 form to determine the equity value of all vehicles. The equity value is equal to the fair market value less encumbrances. Effective June 1, 2021, any equity value exceeding $25,483 shall be counted toward the AU’s CalWORKs resource level.

Example Example FMV of the Motor Vehicle - Less Encumbrances = Total Equity Value

Example Example An AU self-certifies that they own a non-exempt motor vehicle with a FMV of $23,500. The AU still owes $5,450 on the vehicle (the encumbrance), resulting in a total equity value of $18,050 for this vehicle. Since the total equity value is less than $25,483, the value is excluded from resource consideration, and the equity of the vehicle will not be counted as a resource toward the AU’s maximum resource limit. The equity (FMV - encumbrance) is less than $25,483.

Chart to Determine Value of Motor Vehicles

Follow the steps below to determine the value of a motor vehicle:

STEP	ACTION
1.	The TOTAL value of the vehicle is EXCLUDABLE when the vehicle meets the criteria below:
	Criteria:	Description:
	AU’s home.	Used as the AU’s home.
	Physically disabled AU or non-AU member.	Used to transport a physically disabled AU or non-AU mem- ber, whether or not the ineligible physically disabled non-AU member’s property is included in the property limit (i.e. undocumented non-citizen, sanctioned parent, SSI/SSP parent and/or child, etc.). The disability may be temporary or permanent. Verify the disability, if it is not evident.
	Produce income	Used to produce income over 50% of the time. If the vehicle was previously used over 50% of the time in self-employed farming, the exemption continues for one year from the date the self-employed farming stopped.
	Income consistent with fair market value.	Used to produce income consistent with its fair market value. (Income may be seasonal.) Refer to PERSONAL PROPERTY DIRECTLY RELATED TO THE USE OF SOME EXEMPT VEHICLES.
	Necessary for Employment	Used for long-distance travel necessary for employment, other than daily commuting.
	Transporting fuel or water.	Used to transport the AU's primary source of heating fuel or water.
	Prior use in self-employment farming	Due to the vehicle’s prior use in self-employed farming over 50% of the time, the vehicle is exempt for one year from the date when self-employed farming stopped.
	Gifts/donations or family transfers (verification from DMV required).	Vehicles gifted, donated or transferred within the family (i.e. grandma gifts her granddaughter a vehicle).
If the vehicle is excludable, document the case and STOP HERE. If the vehicle is NOT excludable, go to STEP 2.
2.	Determine the vehicle's Equity Value (FMV - encumbrances).
3.	Count any equity value in excess of $25,483 towards the resource limit.

Encumbrances

An encumbrance on a vehicle is the "pay-off" amount. This amount includes the principal plus any interest that is currently due on the vehicle. The "pay-off" amount does NOT include ALL the interest that will become due and payable in the future. The EW MUST use the "pay-off" balance showing on a current monthly statement or contact the lender for the current pay-off amount.

The encumbrance is then subtracted from the Fair Market Value, resulting in the Equity Value.

"Self-Certification For Motor Vehicles - CalWORKs" CW 80

The “Self-Certification Form for Motor Vehicles” (CW 80) is a form used to identify and self-certify the value of vehicles owned by the AU. The CW 80 form is required when a recipient reports a vehicle that was not previously reported at the time of initial application, the previous SAR 7 or annual redetermination. Recipients will use the CW 80 to self-certify, under penalty of perjury, the FMV and encumbrances of their vehicle(s) and to identify exempt vehicles.

Example Example A recipient must complete the CW 80 when the SAR 7, or any other mid-period report, indicates that a vehicle has been acquired that was not previously reported.

Reminder: The “Vehicle Information and Self-Certification of Equity Value” (Appendix E) of the SAWS 2 Plus is used by applicants to self-certify and identify the value of vehicles owned by the AU.

DMV Verification

DMV verification is required when a client states that a vehicle was obtained as a gift, donation, or family transfer. The client must be given adequate time to apply for and receive verification from the DMV. Use the following chart to determine when verification of a DMV transaction is due:

If the applicant/recipient has requested DMV verification, paid the fee, and...	Then the applicant/recipient...
Is currently waiting for the vehicle transfer verification,	Shall be given 30 days from the date of the verification request to provide the proof to the County.
It is determined that the DMV has failed to provide the transfer verification, at no fault of the applicant/recipient,	Shall be given an additional 30 days to submit the verification (60 days total from the date of the original request).

The EW shall accept a completed "Sworn Statement" (GEN 853) as verification of the value of the vehicle if the DMV verification is not received by the 60th day.

Note: The County must assist the client by paying the DMV fee if the applicant/recipient is unable to pay. All requests for assistance with the third party payment (i.e. DMV fee) must be approved by the designated CalWORKs liaison who, at the time of the request, shall contact the Program Bureau for further instructions.

Kelley Blue Book (KBB) Value

If the client requests assistance in determining the Fair Market Value (FMV) of a vehicle, the worker will utilize the on-line “Kelley Blue Book” website. Information regarding the vehicle’s year, make, model and number of doors is required.

When using the on-line KBB follow these steps:

Go to www.kbb.com.
Select Search by: “Year, Make & Model”,
Enter the Year, Make, Model then click on the “GO” arrow,
Select “Trade-In Value”,
Select the “Trim” (body type),
On the Select Equipment page, only enter vehicle mileage (12,000 x age of car) and the client’s zip code or office zip if the client is homeless (use the existing auto-populated equipment values - DO NOT add additional equipment).
- Example: An 8 year old car would have a mileage value of 96,000. It is calculated by 12,000 x age of car (8) = 96,000.
On the Select the Vehicle Condition page, select “Fair” as the condition unless the client indicates otherwise.
The “Trade-In Value” is displayed and will be used as the FMV of the vehicle.
Print a copy of the “Trade-In Value” page and have it IDM’d to Benefits-F2.

Salvage Title

DMV defines a salvage vehicle as “a vehicle which has been wrecked, destroyed, or damaged to the extent that the insurance company considers it uneconomical to make repairs to the vehicle and the vehicle is not repaired by or for the person who owned the vehicle when the damage occurred.” The vehicle’s title will contain a notation identifying the vehicle as a salvage vehicle. A vehicle with a salvage title must be valued in the same manner as all other vehicles. If the client disagrees with the value determined, it must be given the opportunity to acquire verification of the true value from a reliable source.

Vehicle Examples

Example #1

The applicant or recipient owns a non-exempt vehicle with an equity value that exceeds $25,483. The AU self-certifies on the CW 80 that the FMV is $35,000, and they owe $5,000. After subtracting the amount owed on the vehicle from the FMV, the worker determines the equity value of the motor vehicle is $30,000. In this case, the equity value of the vehicle exceeds the $25,483 limit by $4,517. The $4,517 is counted toward the AU’s maximum resource limit. If the AU’s total assets, including the $4,517, fall below the $10,211 (or $15,317 for families with aged/disabled household members) maximum resource limit, the AU is resource-eligible.

Computation of equity counted toward the vehicle resource limit:

$35,000   FMV of the motor vehicle
- $ 53,000   Less Encumbrances
$30,000   Total Equity Value
- $25,483   Less $25,483

=$ 4,517 Amount Counted Toward Resource Limit

Example #2

This example shows a client who received a vehicle from her father and provides the county with verification from DMV that the vehicle was a gift. Regardless of the value of this motor vehicle, because it was given to her as a gift, the vehicle is completely exempt from consideration as a resource. Even if the FMV of the motor vehicle is well over the $25,483, the county may not inquire into or determine the value, or count the value of the motor vehicle toward the AU’s $10,888/$16,333 resource limit. The county wouldn’t need to perform a calculation; however, the client will need to obtain verification from DMV that the vehicle is a gift/donation, or family transfer.